Training/Work Sessions

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Interfund Activity

Financial Statement and Note Presentation

The DAFR8910 Interfund/Interagency Activity report provides information recorded during the year in the AGENCY GENERAL LEDGER (AGL) field that is either manually entered or automatically populated through the RTI process.

This report can be used to verify that the correct AGL, COBJ and amount were used on interfund/interagency activity. Any amount for which an AGL was not posted appears with an NP (no post) in the interfund section of the report. Correct all NPs prior to submission of the AFR. Agencies may also use the FM–Query SIRS Interagency/Interfund Activity report.

Report the following accounts, if applicable, for interfund activity and interfund transaction accruals:

Accounts Receivable/Accounts Payable – Accrual of interfund services provided and used. Disclosure of the agency or D23 fund for accounts receivable or payable is not necessary.

Interfund Receivable/Payable – Interfund loans between agencies or funds. Agencies are required to disclose the amount, agency and fund numbers (agency number, D23 fund number) for the opposite side of the transaction in Note 12.

Due From/Due To – Accrual of reimbursements, transfers, federal/state grant pass-throughs and shared funds. Agencies are required to accurately report the amount, agency number and D23 fund number for the opposite side of the transaction on the DAFR8910. Note 12 disclosure is optional.

Current asset interfund receivables/payables are used for short-term loans to reflect one fund owing cash to another fund within an agency or to another agency. An example of an interfund receivable/payable is the LoanSTAR program.

LoanSTAR is a low-interest revolving loan program for energy retrofits benefiting public buildings, state agencies, school districts, higher education, local governments and hospitals. The LoanSTAR program is sponsored by the Comptroller of Public Accounts – State Energy Conservation Office (SECO).

Under the classified reporting method, individual assets and liabilities are typically categorized as either current or noncurrent based on whether or not they are expected to generate or use cash within 12 months of the end of the fiscal year. Current and non-current interfund receivables and interfund payables must reconcile between SECO and agencies.

To assist agencies in ensuring the amounts reconcile, SECO’s interagency contact person emails a loan activity report to agencies by Sept. 8. Agencies must respond by email on or before Sept. 15 stating the amount they are reporting as current and non-current liabilities.

If an agency does not respond to SECO by Sept. 15, SECO uses its estimates to determine the current and non-current interfund receivable and payable amounts to be presented on the AFR. These amounts must be used for both SECO and the other agency.

Eliminate interfund receivable/payable balances of the same amount within a D23 agency fund. The most common example is when an agency uses T-codes 467 and 468 to correct a COBJ. These T-codes post to the interfund balance GLs 1049 and 0279 and generate T-codes 472 and 471. If the entry using T-codes 467 and 468 is backdated, the generated T-codes liquidate the interfund balances in the current period based on the system management date. Agencies can eliminate these interfund balances using generic T-codes 646 and 647. These T-codes automatically generate T-codes 645 and 644 in the current period.

Hint: By using T-codes 468 and 468R or 467 and 467R, backdated to the previous period, to process a COBJ correction, interfund receivables and payables are not increased (decreased); therefore, generic T-codes 646 and 647 are not needed.

Statement of Revenues, Expenditures and Changes in Fund Balances;
Statement of Revenues, Expenses and Changes in Fund Net Position; and
Statement of Changes in Fiduciary Net Position

Report the following accounts, if applicable, for interfund activity and interfund transactions:

Revenue/Expenditures or Expenses – Activity (such as sales and purchases) for which interfund services were provided (revenue) or used (expenditures or expenses) and transactions between the primary government and its discretely presented component units. For more information, see GASB 34, paragraph 61.